Opposition members of parliament in the Budget Review Committee raised concerns yesterday over the lack of details regarding planned PSIP projects in the proposed State budget 2025.
Opposition members of parliament in the Budget Review Committee raised concerns yesterday over the lack of details regarding planned PSIP projects in the proposed State budget 2025.
A total allocation of MVR 12.4 billion is proposed for PSIP projects, with MVR 3 billion dedicated for new projects.
Last year's budget had the names, costs, latest updates and intended islands of each PSIP project clearly detailed. However, this first budget proposed by the incumbent government does not include this information.
In yesterday's meeting of the Budget Review Committee, many MPs posed questions to Minister of Finance Moosa Zameer about the details of these projects.
The matter was initially raised yesterday by Maldivian Democratic Party (MDP)'s MP for Hanimaadhoo Abdul Ghafoor Moosa. Ghafoor insisted that there would be a list of all projects planned for next year.
"I believe the Parliament should be made aware of the projects the government plans to conduct in islands. This is why we need to have this information," he said.
Zameer responded by saying that in previous years, figures for PSIP projects were included in the budget without any consideration for the State's cashflow and fiscal ratios. This has caused many projects to end up remaining unfinished, he said.
"Instead of listing figures in the budget, we prioritized and the President visited islands and made lists. Even in the previous government, many projects were started in the run up to elections, and then small allocations given to these. This caused the projects to remain incomplete even after advance payments were given," Zameer said, indicating that such projects will also now be proceeded according to a list of priority.
Zameer maintained that while the country's economy is in a dire condition, the State's cash flow cannot be managed if projects are once again listed for implementation.
Hithadhoo MP Ibrahim Nazil and South Hulhumale' MP Dr Ahmed Shamheed were not satisfied with Zameer's response, and raised the same question about project details again.
"You are saying that things will be done as per a list made by the President. Is that list for a year or four years? One year is now ending. For how many years is the list in the President's manifesto planned? We need to see that list," Nazil insisted.
Zameer reiterated that the MVR 12.4 billion proposed for PSIP projects included ongoing and new PSIP projects.
When Zameer said that providing a list would result in some projects remaining incomplete within a year and so being halted, Nazil responded that projects included in the budget do not necessarily have to be completed within a year's timeframe. He said that the projects are run through being distributed across yearly quarters and a number of years.
Central bank Maldives Monetary Authority (MMA) Governor Ahmed Munawar, who was also at the meeting, weighed in with his response as well.
Munawar said that with the Covid 19 pandemic, the State's capital expenditures had exceeded to a level disproportionate to public funds.
As such, gross financing which had been at about MVR 7 billion in 2013 had risen to MVR 23 billion by 2019.
This means that the figures quoted in the budget was beyond financing capabilities, he said.
Munawar said that projects should only be commenced after the necessary financing for them are arranged beforehand.
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